SYNCMOLD - Interim / Quarterly Report 2021

Syncmold Enterprise Corporation and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2021 and 2020 and Independent Auditors’ Review Report

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders Syncmold Enterprise Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Syncmold Enterprise Corporation and its subsidiaries (collectively, the “Group”) as of March 31, 2021 and 2020, the related consolidated statements of comprehensive income for the three months ended March 31, 2021 and 2020, the consolidated statements of changes in equity and cash flows for the three months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As disclosed in Note 11 to the consolidated financial statements, the financial statements of non-significant subsidiaries included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of March 31, 2021 and 2020, the combined total assets of these non-significant subsidiaries were NT$4,001,747 thousand and NT$3,636,804 thousand, respectively, representing 33.40% and 36.85%, respectively, of the consolidated total assets, and the combined total liabilities of these subsidiaries were NT$1,535,362 thousand and NT$1,197,591 thousand, respectively, representing 27.17% and 29.42%, respectively, of the consolidated total liabilities; for the three months ended March 31, 2021 and 2020, the amounts of combined comprehensive income of these subsidiaries were NT$26,726 thousand and NT$20,376 thousand, respectively, representing 29.53% and 25.33%, respectively, of the consolidated total comprehensive income. In addition, as disclosed in Note 12 to the consolidated financial statements, the amounts of investments accounted for using the equity method as of March 31, 2021 and 2020 were NT$166,399 thousand and NT$171,358 thousand, respectively; for the three months ended March 31, 2021 and 2020, the share of profit of associates of NT$1,843 thousand and NT$3,106

thousand, respectively, was calculated based on financial statements which have not been reviewed. The disclosure information in Note 29 about the aforementioned non-significant subsidiaries and associates was based on the unreviewed financial statements of the subsidiaries and associates for the same reporting periods as those of the Group.

Qualified Conclusion

Based on our reviews, except for adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries and associates accounted for using the equity method as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not give a true and fair view of the consolidated financial position of the Group as of March 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Chih-Yuan Chen and Yao-Ling Huang.

Deloitte & Touche Taipei, Taiwan Republic of China

May 5, 2021

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) Financial assets at fair value through profit or loss - current (Notes 4 and 7) Financial assets at amortized cost - current (Notes 4, 8 and 26) Notes receivable Trade receivables, net (Notes 4 and 9) Inventories (Notes 4 and 10) Other current assets (Notes 4 and 25) Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Notes 4 and 7) Investments accounted for using the equity method (Notes 4 and 12 ) Property, plant and equipment (Notes 4, 13 and 26 ) Right-of-use assets (Notes 4 and 14) Goodwill (Notes 4 and 15) Intangible assets (Notes 4 and 16) Deferred tax assets (Notes 4 and 22) Prepayments for land, property and equipment Refundable deposits Net defined benefit assets (Notes 4 and 19) Prepayments for land use right Other non-current assets (Note 4) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 4, 17, 24 and 26) Financial liabilities at fair value through profit or loss - current (Notes 4 and 7) Short-term bills payable (Notes 4 and 17) Notes payable and trade payables Other payables (Notes 18 and 25) Current tax liabilities (Notes 4 and 22) Lease liabilities - current (Notes 4 ,14 and 25) Current portion of long-term borrowings (Notes 4, 17, 24 and 26) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Notes 4, 17, 24 and 26) Deferred tax liabilities (Notes 4 and 22) Lease liabilities - non-current (Notes 4 and 14) Net defined benefit liabilities (Notes 4 and 19) Guarantee deposits received Other non-current liabilities Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Exchange differences on translating the financial statements of foreign operations Unrealized gain (loss) on financial assets at fair value through other comprehensive income Total other equity Total equity attributable to owners of the Corporation NON-CONTROLLING INTERESTS Total equity TOTAL		March 31, 2021 (Reviewed) Amount % $ 2,611,471 22 281,406 2 540,060 4 372,637 3 3,110,349 26 1,259,407 11 428,505 4 8,603,835 72 69,949 1 166,399 1 1,885,616 16 620,756 5 324,597 3 33,973 - 86,530 1 137,604 1 41,999 - 2,638 - - - 8,355 - 3,378,416 28 $ 11,982,251 100 $ 1,876,528 16 2,444 - - - 2,167,863 18 508,777 4 161,440 1 170,530 2 16,162 - 17,322 - 4,921,066 41 108,170 1 339,329 3 242,075 2 20,763 - 1,389 - 17,127 - 728,853 6 5,649,919 47 1,237,242 10 2,592,857 22 904,665 8 634,020 5 1,292,169 11 2,830,854 24 (672,198) (6) 4,447 - (667,751) (6) 5,993,202 50 339,130 3 6,332,332 53 $ 11,982,251 100		December 31, 2020 (Audited) Amount % $ 2,420,807 21 375,949 3 605,827 5 392,958 3 3,616,529 31 967,154 8 429,744 4 8,808,968 75 70,286 1 164,556 1 1,686,017 14 495,502 4 324,597 3 34,250 - 79,720 1 66,967 1 37,202 - 2,567 - - - 279 - 2,961,943 25 $ 11,770,911 100 $ 1,867,695 16 - - 29,981 - 2,183,688 19 498,717 4 181,357 2 133,785 1 16,909 - 17,314 - 4,929,446 42 56,227 1 331,939 3 170,268 1 20,763 - 1,308 - 19,125 - 599,630 5 5,529,076 47 1,237,242 10 2,592,587 22 904,665 8 634,020 5 1,165,528 10 2,704,213 23 (639,134) (5) 3,519 - (635,615) (5) 5,898,427 50 343,138 3 6,241,565 53 $ 11,770,641 100		March 31, 2020 (Reviewed)
						Amount % $ 3,159,555 32 336,628 3 196,236 2 351,682 4 2,421,361 25 736,930 7 227,257 2 7,429,649 75 55,209 1 171,358 2 1,225,184 13 408,490 4 324,597 3 24,322 - 69,245 1 21,519 - 34,572 - 2,273 - 97,296 1 6,411 - 2,440,476 25 $ 9,870,125 100 $ 1,432,250 15 - - - - 1,509,038 15 370,460 4 81,489 1 124,201 1 - - 29,440 - 3,546,878 36 - - 309,770 3 203,985 2 9,200 - 213 - - - 523,168 5 4,070,046 41 1,237,242 13 2,591,280 26 810,515 8 431,506 5 1,186,625 12 2,428,646 25 (687,645) (7) (236) - (687,881) (7) 5,569,287 57 230,792 2 5,800,079 59 $ 9,870,125 100

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche auditors’ review report dated May 5, 2021)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

OPERATING REVENUE (Note 4) OPERATING COSTS (Notes 4, 10 and 21) GROSS PROFIT OPERATING EXPENSES (Notes 21 and 25) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit loss (gain) Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Other income (Notes 4 and 14 ) Other gains and losses (Note 27) Interest income Net foreign exchange gain (Note 28) Net gain (loss) on financial assets at fair value through profit or loss (Notes 4 and 7) Share of profit of associates (Notes 4 and 12) Interest expenses (Note 25) Total non-operating income and expenses PROFIT BEFORE INCOME TAX FROM OPERATIONS INCOME TAX EXPENSE (Notes 4 and 22) NET PROFIT FOR THE PERIOD		For the Three Months	For the Three Months	Ended March 31
		2021 Amount % $ 2,293,991 100 1,827,316 80 466,675 20 68,107 3 184,147 8 47,551 2 539 - 300,344 13 166,331 7 2,840 - (17,124) (1) 9,812 1 2,433 - 45,121 2 389 - (8,181) - 35,290 2 201,621 9 76,588 4 125,033 5		2020
				Amount % $ 1,720,509 100 1,292,995 75 427,514 25 55,248 3 119,174 7 36,620 2 (3,956) - 207,086 12 220,428 13 7,067 - 790 - 7,932 - 19,364 1 (25,089) (1) 3,106 - (7,451) - 5,719 - 226,147 13 90,385 5 135,762 8 (Continued)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Share of other comprehensive income of subsidiaries accounted for using the equity method Items that may be reclassified subsequently to profit or loss: Exchange differences on translating the financial statements of foreign operations Other comprehensive loss for the period, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE PERIOD NET PROFIT (LOSS) ATTRIBUTABLE TO: Owners of the Corporation Non-controlling interests TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO: Owners of the Corporation Non-controlling interests EARNINGS PER SHARE (Note 23) Basic Diluted		For the Three Months	For the Three Months	Ended March 31
		2021 Amount % $ 1,454 - (35,990) (1) (34,536) (1) $ 90,497 4 $ 126,115 5 (1,082) - $ 125,033 5 $ 94,505 4 (4,008) - $ 90,497 4 $ 1.02 $ 1.01		2020
				Amount % $ - - (55,314) (3) (55,314) (3) $ 80,448 5 $ 132,774 8 2,988 - $ 135,762 8 $ 78,913 5 1,535 - $ 80,448 5 $ 1.07 $ 1.06

		$		$
		$		$
		$		$
		$		$
		$		$

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche auditors’ review report dated May 5, 2021)

(Concluded)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

				Equity A	ttributable to O	wners of the Corporation (Notes 4 and 20)	wners of the Corporation (Notes 4 and 20)	wners of the Corporation (Notes 4 and 20)
Ordinary Shares $ 1,237,242 - - - $ 1,237,242 $ 1,237,242 - - - - $ 1,237,242		CapitalSurplus			Total $ 2,591,280 - - - $ 2,591,280 $ 2,592,857 - - - - $ 2,592,857		Retained Earnings		Total $ 2,295,872 132,774 - 132,774 $ 2,428,646 $ 2,704,213 126,115 - 126,115 526 $ 2,830,854		Other Equity	Total Other Equity $ (634,020) - (53,861) (53,861) $ (687,881 ) $ (635,615) - (31,610 ) (31,610) (526) $ (667,751 )
	Difference Between the Consideration Paid and the Carrying Amount of the Subsidiaries’ Issuance of Net Assets Ordinary During Actual Shares Acquisition $ 1,184,809 $ 410,949 - - - - - - $ 1,184,809 $ 410,949 $ 1,184,809 $ 412,470 - - - - - - - - $ 1,184,809 $ 412,470	Changes in Percentage of Ownership Interests in Subsidiaries $ 143,150 - - - $ 143,150 $ 143,150 - - - - $ 143,150	Consolidation Excess $ 852,372 - - - $ 852,372 $ 852,372 - - - - $ 852,372	Other $ - - - - $ - $ 56 - - - - $ 56
										Exchange Differences on Translating the Financial Statements of Foreign Operations $ (633,784) - (53,861) (53,861) $ (687,645 ) $ (639,134) - (33,064 ) (33,064) - $ (672,198 )	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehen- sive Income $ (236) - - - $ (236 ) $ 3,519 - 1,454 1,454 (526) $ 4,447
						Legal Reserve $ 810,515 - - - $ 810,515 $ 904,665 - - - - $ 904,665	Special Reserve $ 431,506 - - - $ 431,506 $ 634,020 - - - - $ 634,020	Unappropri- ated Earnings $ 1,053,851 132,774 - 132,774 $ 1,186,625 $ 1,165,528 126,115 - 126,115 526 $ 1,292,169

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche auditors’ review report dated May 5, 2021)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit loss (gain) Net loss (gain) on financial assets at fair value through profit or loss Interest expenses Interest income Share of profit of associates Gain on disposal of property, plant and equipment Write-downs of inventories Net gain on unrealized foreign currency exchange Impairment loss on property, plant and equipment Gain on lease modification Changes in operating assets and liabilities Notes receivable Trade receivables Inventories Other current assets Notes payable and trade payables Other payables Other current liabilities Net defined benefit assets and liabilities Other non-current liabilities Cash generated from operations Interest paid Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at amortized cost Proceeds from sale of financial assets at amortized cost Purchase of financial assets at fair value through profit or loss Proceeds from sale of financial assets at fair value through profit or loss Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Payments for intangible assets Increase in non-current assets		For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 201,621 94,605 4,572 539 (45,121) 8,181 (9,812) (389) (1,615) 20,445 (38,700) 573 (9) 20,971 578,399 (309,531) 3,493 (43,655) 7,063 292 (71) (1,998) 489,853 (7,250) (99,362) 383,241 - 65,767 (109,415) 251,629 (255,642) 10,047 (4,715) (4,095) (3,825)	2020 $ 226,147 69,879 3,329 (3,956) 25,089 7,451 (7,932) (3,106) (487) 1,684 (4,395) - - 53,161 692,515 13,176 23,666 (465,089) (36,753) 2,448 (1,760) - 595,067 (7,441) (101,481) 486,145 (22,174) - (384,475) 117,942 (22,740) 7,180 (3,028) (1,618) - (Continued)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

Increase in prepayments for land, property and equipment Increase in prepayments for land use right Interest received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayments of bond payables Decrease in short-term bills payable Proceeds from long-term borrowings Proceeds from guarantee deposits received Refunds of guarantee deposits received Repayment of the principal portion of lease liabilities Net cash (used in) generated from financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ (85,817) - 9,812 (126,254) 3,183 - (29,981) 51,196 80 - (65,537) (41,059) (25,264) 190,664 2,420,807 $ 2,611,471	2020 $ (2,800) (97,296) 7,932 (401,077) 425,268 (150,000) - - - (8) (38,633) 236,627 (51,447) 270,248 2,889,307 $ 3,159,555

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche auditors’ review report dated May 5, 2021)

(Concluded)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

1. GENERAL INFORMATION

Syncmold Enterprise Corporation (the “Corporation”) was incorporated in the Republic of China (ROC) in July 1979 and is mainly engaged in the processing, manufacturing, trading, technology licensing and related import and export business of various metal molds, plastic molds and electronic parts.

The Corporation’s shares were approved for listing on the emerging stock board of the Taipei Exchange (TPEx) in December 2005 and after obtaining approval from the Financial Supervisory Commission, Executive Yuan in November 2006, the Corporation’s shares were listed on the over-the-counter market (OTC) on January 11, 2007. In November 2009, the Corporation obtained approval to transfer listing of to the Taiwan Stock Exchange (TWSE) and they were officially listed and started trading its shares on December 17, 2009.

The consolidated financial statements are presented in the Corporation’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by Corporation’s board of directors on May 5, 2021.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have material impact on the Group’s accounting policies.

b. New IFRSs in issue but not yet endorsed and issued into effect by the FSC

Effective Date New IFRSs Announced by IASB (Note 1) “Annual Improvements to IFRS Standards 2018-2020” January 1, 2022 (Note 2) Amendments to IFRS 3 “Reference to the Conceptual Framework” January 1, 2022 (Note 3) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between an Investor and its Associate or Joint Venture” Amendments to IFRS 16 “Covid-19 - Related Rent Concessions April 1, 2022 (Note 8) IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendment to IFRS 16 “Covid-19 - Related Rent Concessions April 1, 2021 (Note 8) beyond June 30, 2021” (Continued)

Effective Date New IFRSs Announced by IASB (Note 1) Amendments to IAS 1 “Classification of Liabilities as Current or January 1, 2023 Non-current” Amendments to IAS 1 “Disclosure of Accounting Policies” January 1, 2023 (Note 6) Amendments to IAS 8 “Definition of Accounting Estimates” January 1, 2023 (Note 7) Amendments to IAS 16 “Property, Plant and Equipment - Proceeds January 1, 2022 (Note 4) before Intended Use” Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a January 1, 2022 (Note 5) Contract” (Concluded)

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” will be applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.
Note 3: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2022.
Note 4: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
Note 5: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.
Note 6: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 7: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 8: The Group applies the amendment from April 1, 2021 and recognizes the cumulative effect of retrospective application in retained earnings on January 1, 2021.

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit liabilities (assets) which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
3) Level 3 inputs are unobservable inputs for the asset or liability.
c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Corporation and the entities controlled by the Corporation (i.e., its subsidiaries).

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Corporation.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Corporation and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

See Note 11 and Tables 6 and 7 for the detailed information of subsidiaries (including the percentages of ownership and main businesses).

d. Other significant accounting policies

Except for the following, refer to the consolidated financial statements for the year ended December 31, 2020.

1) Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

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2) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimations, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The Group considers the economic implications of the COVID-19 when making its critical accounting estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits Cash equivalents Time deposits with original maturities of less than 3 months	March 31, 2021 December 31, 2020 $ 2,704 $ 2,058 2,239,073 2,188,915 369,694 229,834 $ 2,611,471 $ 2,420,807	March 31, 2020 $ 2,741 2,559,811 597,003 $ 3,159,555

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets at fair value through profit or loss (FVTPL)-current Financial assets mandatorily classified as at FVTPL Derivative financial assets Foreign exchange forward contracts (a) Non-derivative financial assets Domestic listed shares Mutual funds Hybrid financial assets Structured deposits (b)	March 31, 2021 December 31, 2020 $ 2,189 $ 22,322 214,054 200,701 - - 216,243 223,023 65,163 152,926 $ 281,406 $ 375,949	March 31, 2020 $ - 89,813 20,000 109,813 226,815 $ 336,628 (Continued)

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Financial assets at FVTPL-non-current Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Domestic emerging market shares Overseas unlisted shares Private funds Financial liabilities at fair value through profit or loss (FVTPL)-current Financial assets mandatorily classified as at FVTPL Derivative financial assets Foreign exchange forward contracts (a)	March 31, 2021 December 31, 2020 $ 17,491 $ 15,619 49,965 51,579 2,493 3,088 $ 69,949 $ 70,286 $ 2,444 $ -	March 31, 2020 $ 10,686 44,523 - $ 55,209 $ - (Concluded)

a. At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting were as follows:

March 31, 2021

			Notional Amount
	Currency	Maturity Date	(In Thousands)
Sell	US$/RMB	2021.04	US$1,000/RMB6,760
Sell	US$/RMB	2021.05	US$1,000/RMB6,832
Sell	US$/RMB	2021.06	US$1,000/RMB6,670
Sell	US$/RMB	2021.06	US$1,000/RMB6,612
Sell	US$/RMB	2021.06	US$1,000/RMB6,597
Sell	US$/RMB	2021.07	US$1,000/RMB6,522
Sell	US$/RMB	2021.07	US$1,000/RMB6,537
Sell	US$/RMB	2021.07	US$1,000/RMB6,539
Sell	US$/RMB	2021.08	US$1,000/RMB6,553
Sell	US$/RMB	2021.08	US$1,000/RMB6,561
Sell	US$/RMB	2021.08	US$1,000/RMB6,562
Sell	US$/RMB	2021.09	US$1,000/RMB6,600

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December 31, 2020

			Notional Amount
	Currency	Maturity Date	(In Thousands)
Sell	US$/RMB	2021.01	US$1,000/RMB6,528
Sell	US$/RMB	2021.02	US$1,000/RMB6,973
Sell	US$/RMB	2021.02	US$1,000/RMB6,854
Sell	US$/RMB	2021.02	US$1,000/RMB6,890
Sell	US$/RMB	2021.02	US$1,000/RMB6,891
Sell	US$/RMB	2021.03	US$1,000/RMB6,987
Sell	US$/RMB	2021.03	US$2,000/RMB13,882
Sell	US$/RMB	2021.03	US$2,000/RMB13,842
Sell	US$/RMB	2021.03	US$2,000/RMB13,682
Sell	US$/RMB	2021.04	US$1,000/RMB6,760
Sell	US$/RMB	2021.05	US$1,000/RMB6,832
Sell	US$/RMB	2021.06	US$1,000/RMB6,670
Sell	US$/RMB	2021.06	US$1,000/RMB6,612
Sell	US$/RMB	2021.06	US$1,000/RMB6,597

The Group entered into foreign exchange forward contracts to manage exposures due to exchange rate fluctuations of foreign currency denominated assets and liabilities.

b. The Group successively entered into 1-6 month structured time deposit contracts with bank for the three months ended March 31, 2021 and 2020. The structured time deposit contract includes an embedded derivative instrument which is not closely related to the host contract. The entire contract is assessed and mandatorily classified as at FVTPL since it contained a host that is an asset within the scope of IFRS 9.

8. FINANCIAL ASSETS AT AMORTIZED COST

Current Time deposits with original maturities of more than 3 months Time deposits pledged as collateral with original maturities of more than 3 months Restricted deposit TRADE RECEIVABLES, NET At amortized cost Gross carrying amount Less: Allowance for impairment loss	March 31, 2021 December 31, 2020 $ 537,617 $ 601,313 1,893 3,964 550 550 $ 540,060 $ 605,827 March 31, 2021 December 31, 2020 $ 3,121,662 $ 3,627,405 (11,313) (10,876) $ 3,110,349 $ 3,616,529	March 31, 2020 $ 196,236 - - $ 196,236 March 31, 2020 $ 2,432,071 (10,710) $ 2,421,361

9. TRADE RECEIVABLES, NET

14 -

The average credit period of sales of goods was 130-160 days. No interest was charged on trade receivables. The Group uses other publicly available financial information or its own trading records to rate its major customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management annually.

The Group applies the simplified approach to providing for expected credit losses prescribed, which permits the use of lifetime expected loss provision for all trade receivables. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of trade receivables based on the Group’s provision matrix.

March 31, 2021

Not Past Due Expected credit loss rate - Gross carrying amount $ 3,048,263 Loss allowance (Lifetime ECLs) - Amortized cost $ 3,048,263 December 31, 2020 Not Past Due Expected credit loss rate - Gross carrying amount $ 3,542,654 Loss allowance (Lifetime ECLs) - Amortized cost $ 3,542,654 March 31, 2020 Not Past Due Expected credit loss rate - Gross carrying amount $ 2,325,353 Loss allowance (Lifetime ECLs) - Amortized cost $ 2,325,353	Less than 30 Days 31 to 90 Days 3.81% 18.04% $ 24,391 $ 46,382 (930) (8,365) $ 23,461 $ 38,017 Less than 30 Days 31 to 90 Days 5.51% 14.83% $ 41,942 $ 38,235 (2,313) (5,669) $ 39,629 $ 32,566 Less than 30 Days 31 to 90 Days 3.17% 16.38% $ 62,158 $ 40,605 (1,972) (6,650) $ 60,186 $ 33,955	91 to 180 Days 42.86% $ 1,064 (456) $ 608 91 to 180 Days 42.93% $ 2,944 (1,264) $ 1,680 91 to 180 Days 31.98% $ 2,683 (858) $ 1,825	Over 180 Days 100% $ 1,562 (1,562) $ - Over 180 Days 100% $ 1,630 (1,630) $ - Over 180 Days 96.70% $ 1,272 (1,230) $ 42	Total $ 3,121,662 (11,313) $ 3,110,349 Total $ 3,627,405 (10,876) $ 3,616,529 Total $ 2,432,071 (10,710) $ 2,421,361

15 -

The movements of the loss allowance of trade receivables were as follows:

Balance at January 1 Add: Net remeasurement of loss allowance Less: Reversal of loss allowance Foreign exchange gains and losses Balance at March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 10,876 539 - (102) $ 11,313	2020 $ 14,444 - (3,956) 222 $ 10,710

10. INVENTORIES

Finished goods Work in progress Raw materials	March 31, 2021 December 31, 2020 $ 404,928 $ 327,374 340,502 234,759 513,977 405,021 $ 1,259,407 $ 967,154	March 31, 2020 $ 239,947 185,475 311,508 $ 736,930

The cost of goods sold for the three months ended March 31, 2021 and 2020 included inventory write-downs of $20,445 thousand and $1,684 thousand, respectively.

11. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements:

Investor
Investee
Nature of Activities
Syncmold Enterprise
Corp.
Syncmold Enterprise
(Samoa) Corp.
The trading and commercial related practices
of all metal molds and plastic molds as
well as the reinvestment of subsidiaries in
mainland China.
Grand Advance Inc.
The trading, imports, exports and
investments of electronic parts.
Syncmold Enterprise
(USA) Corp.
The trading, imports and exports of
electronic parts.
Gatetech Technology Inc.
Precision molding and magnesium alloy die
caster manufacturing and transaction
business
Syncmold Enterprise
Vietnam Co., Ltd.
Electronic parts processing manufacturing,
trading and related import and export
business.
Syncmold Enterprise
(Malaysia) Sdn. Bhd.
The trading, imports and exports of
electronic parts.
Syncmold Enterprise
(Singapore) Pte. Ltd.
The trading, imports and exports of
electronic parts.
Syncmold Enterprise
(Thailand) Co., Ltd.
Electronic parts processing manufacturing,
trading and related import and export
business.
Leohab Enterprise Co.,
Ltd.
Precision hardware components
manufacturing
Grand Advance Inc.
Canford International
Limited
Import and export trade and investment
business.
Fullking Development
Limited
Import and export trade and investment
business.
Full Glary Holding
Limited
Import and export trade and investment
business.

Proportion of Ownership (%)
March 31,
2021
December 31,
2020
March 31,
2020
Note
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 2
73.43
73.43
72.81
Note 4
100.00
100.00
100.00
Note 2
100.00
100.00
-
Note 5
100.00
100.00
-
Note 6
100.00
100.00
-
Note 7
70.00
70.00
-
Note 3
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2

(Continued)

16 -

Investor
Investee
Nature of Activities
Syncmold Enterprise
(Samoa) Corp.
Full Big Limited
Reinvesting subsidiaries of mainland China
and international business.
Forever Business
Development Limited
Reinvesting subsidiaries of mainland China
and international business.
Full Celebration Limited
Reinvesting subsidiaries of mainland China
and international business.
Fuzhou Fulfil Tech Co.,
Ltd.
Electronic parts processing and
manufacturing, trading and related import
and export business.
Fujian Khuan Hua Precise
Mold Co., Ltd.
Processing, manufacturing, trading and
related import and export business of
various metal molds, plastic molds and
plastic injection molds.
Fuqing Fuqun Electronic
Hardware Tech Co.,
Ltd.
Electronic parts processing and
manufacturing, trading and related import
and export business.
Gatetech
Technology Inc.
Gatech Holding Ltd.
General investment business
Leohab Enterprise
Co., Ltd.
Sweet International Group
Ltd.
General investment business
Forever Business
Development
Limited
Dongguan Khuan Huang
Precise Mold Plastic
Co., Ltd.
Processing, manufacturing, trading and
related import and export business of
various metal molds, plastic molds and
plastic injection molds.
Canford
International
Limited
Suzhou Fulfil Electronics
Co., Ltd.
Electronic parts processing and
manufacturing, trading and related import
and export business.
Fullking
Development
Limited
Zhongshan Fulfil Tech.
Co., Ltd.
Electronic parts processing and
manufacturing, trading and related import
and export business.
Full Glary Holding
Limited
Kunshan Fulfil Tech Co.,
Ltd.
Manufacturing and assembling of laptop
components such as precision bearing,
hardware and related accessories.
Full Celebration
Limited
Chongqing Fulfil Tech
Co., Ltd.
The processing, manufacturing, related
imports and exports of all electronic,
plastic and electronic parts.
Gatech Holding Ltd.
Gatech International Ltd.
General investment business
Gatech International
Ltd.
Gatetech (Suzhou)
Technology Co., Ltd.
Aluminum and magnesium alloy
manufacturing and trading
Sweet International
Group Ltd.
Lucky King Holdings Ltd.
General investment business
Lucky King
Holdings Ltd.
Suzhou Leoho Electronics
Co., Ltd.
Precision hardware components
manufacturing
Commuwell Enterprise
(Thailand) Co., Ltd.
Plastic shot and hardware components
manufacturing

Proportion of Ownership (%)
March 31,
2021
December 31,
2020
March 31,
2020
Note
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
-
Note 3
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
-
Note 3
100.00
100.00
-
Note 3
100.00
100.00
-
Note 3
(Concluded)

Note 1: Its financial statements for the three months ended March 31, 2021 and 2020 have been reviewed.
Note 2: As the subsidiary is not a major subsidiary, its financial statements for the three months ended March 31, 2021 and 2020 have not been reviewed.
Note 3: The subsidiary is not a major subsidiary. On November 30, 2020, the Corporation completed the acquisition of Leohab Enterprise Co., Ltd. for a cash consideration of $232,677 thousand after the acquisition, the Corporations percentage of ownership in Leohab Enterprise Co., Ltd. was 70%. Its financial statements for the three months ended March 31, 2021 have not been reviewed.
Note 4: The subsidiary is not a major subsidiary. On April 21, 2020 and July 27, 2020, the Corporation acquired additional 0.17% and 0.45% ownerships in Gatetech Technology Inc. for a cash consideration of $1,345 thousand and $2,470 thousand, respectively. Except for 2020, its financial statements for the three months ended March 31, 2021 have been reviewed.
Note 5: The subsidiary is not a major subsidiary. The establishment of Syncmold Enterprise (Malaysia) Sdn. Bhd. was approved on February 10, 2020. As of June 10, 2020, the Corporation had invested $3,639 thousand in exchange for 100% shareholding interest. Its financial statements for the three months ended March 31, 2021 and 2020 have not been reviewed.
17 -
Note 6: The subsidiary is not a major subsidiary. The establishment of Syncmold Enterprise (Singapore) Pte. Ltd. was approved on February 27, 2020.As of June 29, 2020, the Corporation had invested $1,100 thousand in exchange for 100% shareholding interest. Its financial statements for the three months ended March 31, 2021 and 2020 have not been reviewed.
Note 7: The subsidiary is not a major subsidiary. The establishment of Syncmold Enterprise (Thailand) Co., Ltd. was approved on May 14, 2020. As of May 27, 2020, the Corporation had invested $19,920 thousand in exchange for 100% shareholding interest. Its financial statements for the three months ended March 31, 2021 and 2020 have not been reviewed.

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Associates that are not individually material Unlisted company High Grade Tech Co., Ltd. Corebio technologies Co., Ltd.	March 31, 2021 December 31, 2020 $ 132,523 $ 128,639 33,876 35,917 $ 166,399 $ 164,556	March 31, 2020 $ 126,926 44,432 $ 171,358

Investments were accounted for using the equity method and the share of profit or loss for the three months ended March 31, 2021 and 2020 was calculated based on financial statements which have not been reviewed.

13. PROPERTY, PLANT AND EQUIPMENT

Asset used by the Group Freehold land Buildings Equipment Transportation equipment Office equipment Other equipment Property under construction	March 31, 2021 December 31, 2020 $ 770,934 $ 703,162 443,192 439,242 458,389 440,378 13,521 16,113 20,277 18,201 61,479 68,921 117,824 - $ 1,885,616 $ 1,686,017	March 31, 2020 $ 495,581 313,356 368,620 12,323 11,467 23,837 - $ 1,225,184

To expand its operations, Syncmold Enterprise Vietnam Co., Ltd. signed a contract for the self-construction of factory in December 2020. The total contract price amounted to VND263,000,000 thousand (excluding value-added tax), which was accounted for according to the completion progress. As of March 31, 2021, the construction was not yet completed and the unfinished work amounted to NT$117,824 thousand (VND105,200,000 thousand).

18 -

Except for the aforementioned addition and recognized depreciation, the Group did not have significant disposal, or impairment of property, plant and equipment during the three months ended March 31, 2021 and 2020. The above items of property, plant and equipment used by the Group are depreciated on a straight-line basis over their estimated useful lives as follows:

Building
Main building	5-60 years
Electromechanical power equipment	4-5 years
Equipment	1-23 years
Transportation equipment	5-10 years
Office equipment	3-10 years
Other equipment	1-20 years

14. LEASE ARRANGEMENTS

a. Right-of-use assets

March 31, 2021 Carrying amounts Lands $ 174,723 Buildings 444,132 Transportation equipment 1,901 $ 620,756 Additions to right-of-use assets Depreciation charge for right-of-use assets Lands Buildings Transportation equipment Income from the subleasing of right-of-use assets (presented in other income)	December 31, 2020 March 31, 2020 $ 174,905 $ 52,839 318,942 355,168 1,655 483 $ 495,502 $ 408,490 For the Three Months Ended March 31	December 31, 2020 March 31, 2020 $ 174,905 $ 52,839 318,942 355,168 1,655 483 $ 495,502 $ 408,490 For the Three Months Ended March 31	December 31, 2020 March 31, 2020 $ 174,905 $ 52,839 318,942 355,168 1,655 483 $ 495,502 $ 408,490 For the Three Months Ended March 31
		2021 $ 177,138 $ 901 46,776 290 $ 47,967 $ -	2020 $ 12,903 $ 151 33,576 93 $ 33,820 $ (4,917)

Except for the recognized depreciation, the Group did not have any significant impairment of right-of-use assets during the three months ended March 31, 2021 and 2020.

b. Lease liabilities

Carrying amounts Current Non-current	March 31, 2021 December 31, 2020 $ 170,530 $ 133,785 $ 242,075 $ 170,268	March 31, 2020 $ 124,201 $ 203,985

19 -

Range of discount rate for lease liabilities was as follows:

	March 31,	December 31,	March 31,
	2021	2020	2020
Buildings	0.94%-4.90%	0.94%-4.90%	0.94%-4.90%
Transportation equipment	0.94%-4.55%	0.94%-1.69%	0.94%

c. Subleases

The Group subleases its right-of-use assets for buildings under operating leases with lease terms of 5 years and with the priority to extend the lease. The lease contracts contain market review clauses in the event that the lessees exercise their options to extend.

The maturity analysis of lease payments receivable under operating subleases was as follows:

		March 31,	December	December	31,	March 31,
		2021		2020		2020
	Year 1	$	$		-	$ 4,162
d.	Other lease information

Expenses relating to short-term leases Total cash outflow for leases	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 8,539 $ (77,774)	2020 $ 4,025 $ (46,404)

The Group leases certain building and transportation equipment which qualify as short-term leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

15. GOODWILL

Cost Balance at January 1 Balance at end of period Accumulated impairment losses Balance at January 1 Balance at end of period Carrying amounts at end of period	March 31, 2021 December 31, 2020 $ 366,777 $ 366,777 $ 366,777 $ 366,777 $ (42,180) $ (42,180) $ (42,180) $ (42,180) $ 324,597 $ 324,597	March 31, 2020 $ 366,777 $ 366,777 $ (42,180) $ (42,180) $ 324,597

20 -

16. INTANGIBLE ASSETS

	March 31,	March 31,	December 31,	December 31,	March 31,	March 31,
		2021		2020		2020
Trademarks	$	61	$	66	$	-
Computer software		31,785		31,545		24,322
Patents		2,127		2,639		-
	$	33,973	$	34,250	$	24,322

Except for the recognized amortization, the Group did not have any significant additions, disposals or impairment of intangible assets during the three months ended March 31, 2021 and 2020. The above items of intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:

Trademarks	7-10 years
Computer software	1-5 years
Patents	1-19 years

17. BORROWINGS

a. Short-term borrowings

Secured borrowings Mortgage loans Bank loans Unsecured borrowings Line of credit borrowings	March 31, 2021 December 31, 2020 $ 474,000 $ 484,000 5,804 8,895 1,396,724 1,374,800 $ 1,876,528 $ 1,867,695	March 31, 2020 $ 280,000 - 1,152,250 $ 1,432,250

The range of interest rates on bank loans was 0.67%-3.75%, 0.67%-3.75% and 0.90%-2.85% on March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

b. Short-term bills payable

	March 31,	March 31,	December 31,	March 31,	March 31,
		2021	2020		2020
Commercial paper	$	-	$ 30,000	$	-
Less: Unamortized discounts on bills payable		-	(19)		-
	$	-	$ 29,981	$	-

21 -

c. Long-term borrowings

Secured borrowings Mortgage loans Unsecured borrowings Line of credit borrowings Less: Current portions OTHER PAYABLES Current Other payables Payables for salaries or bonuses Others	March 31, 2021 December 31, 2020 $ 113,423 $ 59,500 10,909 13,636 124,332 73,136 (16,162) (16,909) $ 108,170 $ 56,227 March 31, 2021 December 31, 2020 $ 263,372 $ 280,535 245,405 218,182 $ 508,777 $ 498,717	March 31, 2020 $ - - - - $ - March 31, 2020 $ 243,502 126,958 $ 370,460

18. OTHER PAYABLES

19. RETIREMENT BENEFIT PLANS

For the three months ended March 31, 2021 and 2020, the pension expenses of defined benefit plans were $116 thousand and $119 thousand, respectively, and these were calculated based on the actuarially determined pension cost rate on December 31, 2020 and 2019, respectively.

20. EQUITY

a. Share capital

Ordinary shares

Number of shares authorized (in thousands) Amount of shares authorized Number of shares issued and fully paid (in thousands) Amount of shares issued	March 31, 2021 December 31, 2020 200,000 200,000 $ 2,000,000 $ 2,000,000 123,724 123,724 $ 1,237,242 $ 1,237,242	March 31, 2020 200,000 $ 2,000,000 123,724 $ 1,237,242

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and a right to dividends.

22 -

The authorized shares include 3,000 thousand shares allocated for the exercise of employee share options.

b. Capital surplus

Capital surplus may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Corporation’s capital surplus and to once a year).

Capital surplus arises from the effect of changes in ownership interests in subsidiaries resulting from equity transactions other than actual disposals or acquisitions, or from changes in capital surplus of subsidiaries accounted for using the equity method and unclaimed dividends may be only use to offset a deficit.

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the amended Articles, where the Corporation made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as a legal reserve of 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Corporation’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of compensation of employees and remuneration of directors and supervisors after the amendment, refer to compensation of employees and remuneration of directors and supervisors in Note 21-b.

As the Corporation is currently in the growth stage, the Corporation considers its industry development and long-term interests of shareholders as well as its programs to maintain operating efficiency and meet its financial goals when determining the distribution of bonuses in shares or cash. The board of directors shall propose allocation ratio every year and submit it to the shareholder’ meeting for approval. For the distribution of bonuses to shareholders, cash dividends are preferred. Distribution of earnings may also be made in the form of share dividends provided that the ratio of cash dividends distributed is 5% to 100% of the total dividends distributed.

An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Corporation’s paid-in capital. The legal reserve may be used to offset deficits. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

Items referred to under Rule No. 1010012865 and Rule No. 1010047490 issued by the FSC and in the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs” should be appropriated to or reversed from a special reserve by the Corporation.

The appropriations of earnings for 2020 and 2019 which were approved in the shareholders’ meeting on March 16, 2021 and board of directors’ meeting on June 18, 2020, respectively, were as follows:

Legal reserve Special reserve Cash dividends	Appropriation of Earnings For the Year Ended December 31 2020 2019 $ 96,510 $ 94,150 1,595 202,514 618,621 556,759	Dividends Per Share (NT$)
		For the Year Ended December 31
		2020 2019 $5.00 $4.50

23 -

The appropriations of earnings for 2020 are subject to the resolution of the shareholders in the shareholders’ meeting to be held on June 24, 2021.

d. Special reserve

Balance at January 1 and March 31	For the Three Months Ended March 31 2021 2020 $ 634,020 $ 431,506	For the Three Months Ended March 31 2021 2020 $ 634,020 $ 431,506	For the Three Months Ended March 31 2021 2020 $ 634,020 $ 431,506
		2021 $ 634,020	2020 $ 431,506

On the initial application of the IFRSs, the balance of retained earnings was not enough to appropriate to special reserve the full amount of IFRS adjustments; the Group appropriated to special reserve only at the amount of $230,916 thousand representing the remaining amount in retained earnings that resulted from the conversion to IFRSs. Additional special reserve should be appropriated for the amount equal to the difference between net debit balance reserves and the special reserve appropriated on the first-time adoption of IFRSs. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and is thereafter, distributed.

e. Non-controlling interests

Balance at January 1 Share of profit (loss) for the year Other comprehensive income (loss) during the year Exchange differences on translating the financial statements of foreign operations Balance at March 31	For the Three Months Ended March 31 2021 2020 $ 343,138 $ 229,257 (1,082) 2,988 (2,926) (1,453) $ 339,130 $ 230,792	For the Three Months Ended March 31 2021 2020 $ 343,138 $ 229,257 (1,082) 2,988 (2,926) (1,453) $ 339,130 $ 230,792	For the Three Months Ended March 31 2021 2020 $ 343,138 $ 229,257 (1,082) 2,988 (2,926) (1,453) $ 339,130 $ 230,792
		2021 $ 343,138 (1,082) (2,926) $ 339,130	2020 $ 229,257 2,988 (1,453) $ 230,792

21. NET PROFIT

a. Employee benefits expense, depreciation and amortization

Employee benefits expense Defined contribution plan Defined benefit plan Other employee benefits Depreciation Amortization			For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
			2021	Total $ 26,362 116 598,913 $ 625,391 $ 94,605 $ 4,572			2020
		Operating Costs $ 20,931 70 456,410 $ 477,411 $ 60,093 $ 514	Operating Expenses $ 5,431 46 142,503 $ 147,980 $ 34,512 $ 4,058			Operating Costs $ 10,025 84 287,934 $ 298,034 $ 44,754 $ 80	Operating Expenses $ 3,405 35 93,032 $ 96,472 $ 25,125 $ 3,249	Total $ 13,430 119 380,966 $ 394,515 $ 69,879 $ 3,329

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b. Compensation of employees and remuneration of directors

According to the Corporation’s Articles of Incorporation, the Corporation accrues compensation of employees and remuneration of directors at rates of no less than 3% and no higher than 2%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors and supervisors. The compensation of employees and the remuneration of directors and supervisors for the three months ended March 31, 2021 and 2020, respectively, are as follows:

Accrual rate

Compensation of employees Remuneration of directors and supervisors Amount Compensation of employees Remuneration of directors and supervisors	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021 2020 7.21% 6.56% 1.58% 1.44% For the Three Months Ended March 31
		2021 $ 10,990 $ 2,413	2020 $ 11,023 $ 2,420

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

The appropriations of compensation of employees and remuneration of directors for 2020 and 2019 that were resolved by the board of directors on March 16, 2021 and March 13, 2020, respectively, are as shown below:

Amount

Compensation of employees Remuneration of directors and supervisors	For the Year Ended December 31	For the Year Ended December 31
	2020 Cash $ 80,000 18,000	2019
		Cash $ 79,000 18,000

The Corporation held board of directors’ meetings on March 16, 2021 and March 13, 2020 and the meetings resulted in the actual amounts of the compensation of employees and remuneration of directors and supervisors paid for 2020 and 2019 to differ from the amounts recognized in the consolidated financial statements. The adjustment for differences will be and was recognized in profit and loss for the years ended December 31, 2021 and 2020.

25 -

Amounts approved in the board of directors’ meeting Amounts recognized in the annual consolidated financial statements	For the Year Ended December 31	For the Year Ended December 31
	2020 Compensation of Employees Remuneration of Directors and Supervisors $ 80,000 $ 18,000 $ 80,847 $ 17,747	2019
		Compensation of Employees Remuneration of Directors and Supervisors $ 79,000 $ 18,000 $ 79,339 $ 17,416

Information on the compensation of employees and remuneration of directors and supervisors resolved by the Corporation’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

22. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

Current tax In respect of the current period Deferred tax In respect of the current period Income tax expense recognized in profit or loss	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 74,332 2,256 $ 76,588	2020 $ 68,780 21,605 $ 90,385

b. Income tax assessments

The income tax returns of the Leohab Enterprise Co., Ltd. through 2017 have been assessed by the tax authorities.

The income tax returns of the Corporation and Gatetech Technology Inc. through 2018 have been assessed by the tax authorities.

23. EARNINGS PER SHARE

Net Profit for the Period

Earnings used in the computation of diluted earnings per share	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 126,115	2020 $ 132,774

26 -

The weighted average number of ordinary shares outstanding (in thousands of shares) is as follows:

Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 123,724 887 $ 124,611	2020 $ 123,724 1,017 $ 124,741

If the Group offered to settle the compensation paid to employees in cash or shares, the Group assumed that the entire amount of the compensation will be settled in shares, and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

24. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy

March 31, 2021 Financial assets at FVTPL Foreign exchange forward contracts Listed shares Structured deposits Emerging market shares Overseas unlisted shares Private funds Financial liabilities at FVTPL Foreign exchange forward contracts	Level 1 $ - 214,054 65,163 10,215 - - $ 289,432 $ -	Level 2 $ 2,189 - - - - - $ 2,189 $ 2,444	Level 3 $ - - - 7,276 49,965 2,493 $ 59,734 $ -	Total $ 2,189 214,054 65,163 17,491 49,965 2,493 $ 351,355 $ 2,444

27 -

December 31, 2020

Financial assets at FVTPL Foreign exchange forward contracts Listed shares Structured deposits Emerging market shares Overseas unlisted shares Private funds March 31, 2020 Financial assets at FVTPL Listed shares Mutual funds Structured deposits Emerging market shares Overseas unlisted shares	Level 1 $ - 200,701 152,926 6,708 - - $ 360,335 Level 1 $ 89,813 20,000 226,815 3,566 - $ 340,194	Level 2 $ 22,322 - - - - - $ 22,322 Level 2 $ - - - - - $ -	Level 3 $ - - - 8,911 51,579 3,088 $ 63,578 Level 3 $ - - - 7,120 44,523 $ 51,643	Total $ 22,322 200,701 152,926 15,619 51,579 3,088 $ 446,235 Total $ 89,813 20,000 226,815 10,686 44,523 $ 391,837

There were no transfers between Levels 1 and 2 in the current and prior periods.

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the three months ended March 31, 2021

Balance at January 1, 2021 Recognized in profit or loss (included in net loss on fair value changes of financial assets at fair value through profit or loss) Balance at March 31, 2021 For the three months ended March 31, 2020 Balance at January 1, 2020 Recognized in profit or loss (included in net gain on fair value changes of financial assets at fair value through profit or loss) Balance at March 31, 2020	Financial Assets at FVTPL
	Equity Instruments $ 63,578 (3,844) $ 59,734 Financial Assets at FVTPL
	Equity Instruments $ 57,409 (5,766) $ 51,643

Balance at January 1, 2021
Recognized in profit or loss (included in net loss on fair value changes of
financial assets at fair value through profit or loss)
Balance at March 31, 2021
For the three months ended March 31, 2020
Balance at January 1, 2020
Recognized in profit or loss (included in net gain on fair value changes of
financial assets at fair value through profit or loss)
Balance at March 31, 2020

Financial Assets
at FVTPL

Equity
Instruments
$ 63,578

(3,844)
$ 59,734
Financial Assets
at FVTPL

Equity
Instruments
$ 57,409

(5,766)
$ 51,643

28 -
3) Valuation techniques and inputs applied for level 2 fair value measurement

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Financial Instrument Valuation Technique and Inputs
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Financial Instrument	Valuation Technique and Inputs
Foreign exchange forward	Discounted cash flows Future cash flows are estimated based
contracts	on observable forward exchange rates at the end of the year
	and contract forward rates, discounted at a rate that reflects
	the credit risk of various counterparties.

4) Valuation techniques and inputs applied for Level 3 fair value measurement

Fair values of emerging market shares are measured using the market approach, while the fair values of overseas unlisted shares are measured using the asset approach.

b. Categories of financial instruments

	March 31,	March 31,	December 31,	December 31,	March 31,	March 31,
		2021		2020		2020
Financial assets
Mandatorily classified as at FVTPL	$	351,355	$	446,235	$	391,837
Financial assets at amortized cost (Note 1)		6,729,941		7,124,038		6,194,178
Financial liabilities
Mandatorily classified as at FVTPL		2,444		-		-
Financial liabilities at amortized cost (Note 2)		4,415,517		4,373,990		3,068,459

Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, notes receivable and trade receivables, other receivables and refundable deposits.
Note 2: The balances include financial liabilities at amortized cost, which comprise short-term borrowings, notes payable and trade payables, other payable, long-term borrowings, and guarantee deposits received.
c. Financial risk management objectives and policies

The Group’s major financial instruments include equity and debt investments, trade receivables, trade payables, and borrowings. The Group’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, and monitors and manages the financial risks relating to the operations of the Group through internal risk reports that analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk and interest rate risk), credit risk and liquidity risk.

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below), interest rates (see (b) below) and other prices (see (c) below).

There is no change in the method of the measurement of market risk.

There has been no change to the Group’s exposure to market risks or the manner in which these risks are managed and measured.

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a) Foreign currency risk

Several subsidiaries of the Group have sales and purchases denominated in foreign currencies, which exposed the Group to foreign currency risk.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) and of the derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 28.

Sensitivity analysis

The Group is mainly exposed to the USD and RMB.

The following table details the Group’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (the functional currency) against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 1%. The sensitivity analysis included only outstanding foreign currency denominated monetary items and foreign exchange forward contracts designated as cash flow hedges, and adjusts their translation at the end of the reporting period for a 1% change in foreign currency rates. A positive (negative) number below indicates increase (decrease) in pre-tax profit associated with the New Taiwan dollar weakening (strengthening) 1% against the relevant currency.

USD impact USD:NTD USD:RMB USD:VND RMB impact RMB:NTD RMB:USD	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2020 $ 6,471 $ (21,494) $ (687) $ (820) $ (437)	2019 $ 6,010 $ (18,926) $ - $ (567) $ (8,174)

This was mainly attributable to the exposure on outstanding receivables in USD and RMB which were not hedged at the end of the reporting period.

In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign currency risk because the exposure at the end of the reporting period did not reflect the exposure during the period.

b) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating interest rates.

30 -

The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	March 31,	March 31,	December 31,	December 31,	March 31,	March 31,
		2021		2020		2020
Fair value interest rate risk
Financial assets	$	974,917	$	988,587	$	1,020,054
Financial liabilities		2,413,465		2,274,865		1,760,436
Cash flow interest rate risk
Financial assets		2,234,930		2,185,789		2,557,460

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate assets, the analysis was prepared assuming the amount of the assets outstanding at the end of the reporting period was outstanding for the whole year. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 100 basis point higher/lower and all other variables were held constant, the Group’s pre-tax profit for the three months ended March 31, 2021 and 2020 would have increased/decreased by $5,587 thousand and $6,394 thousand, respectively.

The Group’s sensitivity to interest rates has not changed significantly from the prior period.

c) Other price risk

The Group was exposed to equity price risk through its investments in domestic listed shares, domestic emerging market shares, mutual funds and overseas unlisted shares. In addition, the Group has appointed a special team to monitor the price risk and will consider hedging the risk exposure should the need arise.

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 1% higher/lower, pre-tax profit for the three months ended March 31, 2021 and 2020 would have increased/decreased by $2,815 thousand and $1,650 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL.

The Group’s sensitivity to other price risk has not changed significantly from the prior period.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation and due to the financial guarantees provided by the Group, could be equal to the total of the carrying amount of the respective recognized financial assets as stated in the balance sheets.

31 -

In order to reduce credit risk, the management team of the Group designated a special team to decide the credit ratings of counterparties and other monitoring procedures to make sure there are appropriate actions taken to collect the overdue receivables. Additionally, on each balance sheet date, the Group reviews the recoverable amounts to ensure appropriate allowances have been made for doubtful accounts. Therefore, the Group considers its credit risk to be significantly reduced.

The Group continuously assesses the financial conditions of customers with outstanding receivables.

As the counterparties of the Group are financial institutions and companies with good credit ratings, the Group has limited credit risk.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Group relies on bank borrowings as a significant source of liquidity. As of March 31, 2021, December 31, 2020 and March 31, 2020, the Group had available unutilized short-term bank loan facilities set out in (b) below.

Financing facilities

Unsecured bank overdraft facilities, reviewed annually and payable on demand Amount used Amount unused Secured bank overdraft facilities Amount used Amount unused	March 31, 2021 December 31, 2020 $ 1,407,633 $ 1,388,436 2,468,853 1,930,200 $ 3,876,486 $ 3,318,636 $ 593,227 $ 552,395 137,566 169,493 $ 730,793 $ 721,888	March 31, 2020 $ 1,152,250 927,750 $ 2,080,000 $ 280,000 120,000 $ 400,000

25. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Group and its subsidiaries, which are related parties of the Group, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed below.

32 -
a. Related party name and category

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Related Party Name Related Party Category
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Related Party Name	Related Party Category
High Grade Tech Co., Ltd.	Associate
Chen Chien Hung	Related party in substance (first-degree relative of the
	Corporation’s director)
Chen Chien Yuan	The legal representative of the Corporation’s director (Note)
Guan-zhen Investment Co., Inc.	Related party in substance (director is the first-degree relative
	of the Corporation’s director)

Note: Before June 2020, Chen Chien Yuan was a related party in substance.

b. Operating expenses

Related Party Category Associate Lease agreements Related Party Category Lease liabilities Related party in substance The legal representative of the Corporation’s director Interest expense Related party in substance The legal representative of the Corporation’s director Lease expense Related party in substance The legal representative of the Corporation’s director	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021 2020 $ - $ 4 For the Three Months Ended March 31
		2021 $ 1,325 724 $ 2,049 $ 4 2 $ 6 $ - - $ -	2020 $ 2,758 1,508 $ 4,266 $ - - $ - $ 226 - $ 226

c. Lease agreements

Lease expenses included expenses relating to short-term leases.

The rental amounts agreed in lease contracts between the Group and other related parties are determined based on market prices and general payment terms.

33 -

d. Prepayments

	Related Party	March 31,	March 31,	March 31,	December	December	31,	March 31,
Line Item	Category		2021			2020		2020
Prepaid expense	Related party in	$		-	$		-	$ 77
(including other	substance
current assets)
Loans to related parties (excluding borrowings		from related		parties)
	Related Party	March 31,			December		31,	March 31,
Line Item	Category		2021			2020		2020
Others payables	Associate	$		-	$		-	$ 4

e. Loans to related parties (excluding borrowings from related parties)
f. Compensation of key management personnel

Related Party Category Short-term employee benefits Post-employment benefits	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 14,914 79 $ 14,993	2020 $ 12,097 70 $ 12,167

The remuneration of directors and key executives, as determined by the remuneration committee, was based on the performance of individuals and market trends.

26. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for short-term borrowings and current portion of bonds payable:

Financial assets at amortized cost - current Property, plant and equipment	March 31, 2021 December 31, 2020 $ 1,893 $ 3,964 835,227 706,058 $ 837,120 $ 710,022	March 31, 2020 $ - 503,807 $ 503,807

27. SIGNIFICANT LOSSES ON DISASTER

A fire broke out in the premises of Suzhou Fulfil Electronics Co., Ltd. on January 20, 2021, which caused damage to some of the plant, machinery, equipment and inventories. The Corporation has property insurance and public liability insurance for the aforementioned plant, machinery, equipment and inventories. The estimated cost of damage in the amount of NT$17,833 thousand was recognized in other gains and losses.

34 -

28. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Group and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

March 31, 2021

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	36,775	28.535 (USD:NTD)	$ 1,049,375
USD		80,772	6.5713 (USD:RMB)	2,304,829
USD		2,409	25,558 (USD:VND)	68,741
RMB		28,698	4.3440 (RMB:NTD)	124,664
RMB		10,052	0.1522 (RMB:USD)	43,666
THB		6,043	0.9149 (THB:NTD)	5,529
Non-monetary items
Financial assets at FVTPL -
non-current
USD		1,751	28.535 (USD:NTD)	49,965
Financial liabilities
Monetary items
USD		59,452	28.535 (USD:NTD)	1,696,463
USD		5,446	6.5713 (USD:RMB)	155,402
RMB		9,829	4.3440(RMB:NTD)	42,697
THB		719	0.9149 (THB:NTD)	658
December 31, 2020
		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	45,597	28.480 (USD:NTD)	$ 1,298,603
USD		89,596	6.5423 (USD:RMB)	2,551,694
USD		4,686	25,689 (USD:VND)	133,457
RMB		64,678	4.3770 (RMB:NTD)	283,096
RMB		10,167	0.1537 (RMB:USD)	44,501
THB		5,874	0.9556 (THB:NTD)	5,613
Non-monetary items
Financial assets at FVTPL -
non-current
USD		1,342	28.480 (USD:NTD)	51,579
Financial liabilities
Monetary items
USD		69,530	28.480 (USD:NTD)	1,980,214
USD		4,083	6.5423 (USD:RMB)	116,284
RMB		8,095	6.5423(RMB:NTD)	35,432

35 -

March 31, 2020

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	33,718	30.225 (USD:NTD)	$ 1,019,127
USD		64,654	7.0851 (USD:RMB)	1,954,167
RMB		12,610	4.255 (RMB:NTD)	53,656
RMB		192,107	0.1411 (RMB:USD)	817,415
Non-monetary items
Financial assets at FVTPL -
non-current
USD		1,500	30.225 (USD:NTD)	44,523
Financial liabilities
Monetary items
USD		53,601	30.225 (USD:NTD)	1,620,090
USD		2,037	7.0851 (USD:RMB)	61,568

The Group is mainly exposed to the USD and the RMB. The following information was aggregated by the functional currencies of the entities in the Group, and the exchange rates between the respective functional currencies and the presentation currency were disclosed. The significant realized and unrealized foreign exchange gains (losses) were as follows:

Foreign Currency NTD USD RMB VND THD SGD	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021 Exchange Rate Net Foreign Exchange Losses 1 (NTD:NTD) $ (3,573) 28.535 (USD:NTD) (312) 4.344 (RMB:NTD) 5,813 0.00112 (VND:NTD) 51 0.9149 (THD:NTD) 449 21.21 (SGD:NTD) 5 $ 2,433	2020
		Exchange Rate Net Foreign Exchange Gains 1 (NTD:NTD) $ (3,587) 30.225 (USD:NTD) (12,792) 4.255 (RMB:NTD) 34,421 0.00116 (VND:NTD) 1,322 - (THD:NTD) - - (SGD:NTD) - $ 19,364

29. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions:
1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (Table 2)
3) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (Table 3)
36 -
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (None)
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital (None)
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital (None)
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 4)
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 5)
9) Trading in derivative instruments (Table 7)
10) Intercompany relationships and significant intercompany transactions (Table 8)
b. Information about significant investees (Table 6)
c. Information on investments in mainland China:
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 7)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses (Tables 1, 2, 4, 5 and 8)
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period
- c) The amount of property transactions and the amount of the resultant gains or losses
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes
- e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to the financing of funds
- f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services
d. Information of major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (None)
37 -

30. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided.

No operating segments have ceased operation during the year.

a. Segment revenue and results

The following was an analysis of the Group’s revenue and results from continuing operations by reportable segments:

Equipment - electronic parts - plastic molding Revenue from continuing operations Other income Other gains and losses Interest income Net foreign exchange gain Net gain (loss) on financial assets at fair value through profit or loss Share of profit of associates Interest expenses General and administrative expenses Income before tax		Income 2021 2020 $ 2,192,987 $ 1,624,106 101,004 96,403 $ 2,293,991 $ 1,720,509		Loss	Loss
		2021 $ 2,192,987 101,004 $ 2,293,991		2021 $ 332,755 17,723 350,478 2,840 (17,124) 9,812 2,433 45,121 389 (8,181) (184,147) $ 201,621	2020 $ 322,270 17,332 339,602 7,067 790 7,932 19,364 (25,089) 3,106 (7,451) (119,174) $ 226,147

The above segment revenue and results were generated from the transactions with external customers. There were no inter-segment transactions for the three months ended March 31, 2021 and 2020.

Segment profit represented the profit before tax earned by each segment without allocation of central administration costs and directors’ salaries, interest income, Other income, other gains and losses, net foreign exchange gain, net gain on financial assets at fair value through profit or loss, share of profit of associates, interest expense and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

b. Segment total assets

The Group has no key operational personnel to monitor segment performance, and thus, the amount of segment assets is zero.

38 -

TABLE 1

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Business Reasons for Allowance for Collateral
Financial Statement Related Highest Balance Interest Rate Nature of Financing Limit for Aggregate Financing
No. Lender Borrower Account Party for the Period Ending Balance [Actual Amount ] Borrowed (%) Financing Transaction Amount Short-term Financing Impairment Loss Item Value Each Borrower Limit
0 Syncmold Enterprise Syncmold Enterprise Other receivables from Yes $ 100,000 $ 100,000 $ - - Short-term $ - Operating capital $ - - - $,1,198,640 $2,397,281
Corporation (Samoa) Corp. related parties financing (20% of the net worth (40% of the net worth
of the Corporation) of the Corporation)
Grand Advance Inc. Other receivables from Yes 100,000 100,000 - - Short-term - Operating capital - - - $,1,198,640 $2,397,281
related parties financing (20% of the net worth (40% of the net worth
of the Corporation) of the Corporation)
Syncmold Enterprise Other receivables from Yes 250,000 250,000 - - Short-term - Operating capital - - - $,1,198,640 $2,397,281
Vietnam Co., Ltd. related parties financing (20% of the net worth (40% of the net worth
of the Corporation) of the Corporation)
Gatetech Technology Other receivables from Yes 200,000 200,000 - - Short-term - Operating capital - - - $,1,198,640 $2,397,281
Inc. related parties financing (20% of the net worth (40% of the net worth
of the Corporation) of the Corporation)
Leohab Enterprise Co., Other receivables from Yes 300,000 300,000 - 1.55 Short-term - Operating capital - - - $,1,198,640 $2,397,281
Ltd. related parties financing (20% of the net worth (40% of the net worth
of the Corporation) of the Corporation)
1 Syncmold Enterprise (Samoa) Fujian Khuan Hua Other receivables from Yes 57,070 57,070 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Corp. Precise Mold Co., related parties financing (20% of the net worth (50% of the net worth
Ltd. of the Corporation) of the Corporation)
Forever Business Other receivables from Yes 85,605 85,605 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Development related parties financing (20% of the net worth (50% of the net worth
Limited of the Corporation) of the Corporation)
Dongguan Khuan Other receivables from Yes 85,605 85,605 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Huang Precise Mold related parties financing (20% of the net worth (50% of the net worth
Plastic Co., Ltd. of the Corporation) of the Corporation)
Syncmold Enterprise Other receivables from Yes 214,013 214,013 42,803 0.00 Short-term - Operating capital - - - $1,198,640 $2,996,601
Corporation related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
2 Grand Advance Inc. Zhongshan Fulfil Tech. Other receivables from Yes 85,605 85,605 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Kunshan Fulfil Tech Other receivables from Yes 85,605 85,605 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Syncmold Enterprise Other receivables from Yes 85,605 85,605 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
(Samoa) Corp. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Chongqing Fulfil Tech Other receivables from Yes 85,605 85,605 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Full Big Limited Other receivables from Yes 85,605 85,605 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Fuzhou Fulfil Tech Other receivables from Yes 85,605 85,605 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Suzhou Fulfil Other receivables from Yes 85,605 85,605 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Electronics Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Syncmold Enterprise Other receivables from Yes 25,682 25,682 11,414 0.00 Short-term - Operating capital - - - $1,198,640 $2,996,601
(USA) Corp. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Fullking Development Other receivables from Yes 128,408 128,408 42,803 0.00 Short-term - Operating capital - - - $1,198,640 $2,996,601
Limited related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Syncmold Enterprise Other receivables from Yes 413,758 413,758 256,815 0.00 Short-term - Operating capital - - - $1,198,640 $2,996,601
Corporation related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
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(Continued)

39 -

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Business Reasons for Allowance for Collateral
No. Lender Borrower Financial Statement Account Related Party Highest Balance for the Period Ending Balance [Actual Amount ] Borrowed Interest Rate (%) Financing Nature of Transaction Amount Short-term Financing Impairment Loss Item Value Financing Limit for Each Borrower Aggregate Financing Limit
3 Full Big Limited Fullking Development Other receivables from Yes $ 22,828 $ 22,828 $ 22,828 0.00 Short-term $ - Operating capital $ - - - $1,198,640 $2,996,601
Limited related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
4 Fuzhou Fulfil Tech Co., Ltd. Fujian Khuan Hua Other receivables from Yes 69,478 69,478 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Precise Mold Co., related parties financing (20% of the net worth (50% of the net worth
Ltd. of the Corporation) of the Corporation)
Fuqing Fuqun Other receivables from Yes 69,478 69,478 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Electronic Hardware related parties financing (20% of the net worth (50% of the net worth
Tech Co., Ltd. of the Corporation) of the Corporation)
Suzhou Fulfil Other receivables from Yes 69,478 69,478 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Electronics Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
5 Suzhou Fulfil Electronics Co., Kunshan Fulfil Tech Other receivables from Yes 39,082 39,082 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Ltd. Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
6 Zhongshan Fulfil Tech. Co., Dongguan Khuan Other receivables from Yes 34,739 34,739 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Ltd. Huang Precise Mold related parties financing (20% of the net worth (50% of the net worth
Plastic Co., Ltd. of the Corporation) of the Corporation)
Chongqing Fulfil Tech Other receivables from Yes 34,739 34,739 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Suzhou Fulfil Other receivables from Yes 34,739 34,739 - - Short-term - Operating capital - - - $1,198,640 $2,996,601
Electronics Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
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Note 1: The authorized amount of loans was approved by the board of directors.

Note 2: The highest balance, ending balance, and the actual amount borrowed were calculated based on the exchange rate at the end of March 2021.

Note 3: All the transactions in the table above have been eliminated during the preparation of the consolidated financial statements.

(Concluded)

40 -

TABLE 2

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Endorsee/Guarantee Ratio of
Accumulated
Endorsement/ Endorsement/
No. Endorser/Guarantor Limit on Endorsement/Guarantee Given on Maximum Amount Endorsed/ Endorsement/ Outstanding Actual Borrowing Amount Endorsed/Guaranteed by Guarantee to Net Endorsement/ Endorsement/ Aggregate Guarantee Given by Parent on Guarantee Given Endorsement/ Guarantee Given on Behalf of
Name Relationship Behalf of Each Party Guaranteed During the Period End of the PeriodGuarantee at the Amount Collateral Equity in Latest Financial Guarantee Limit Behalf of by Subsidiaries on Behalf of Parent Companies in
Subsidiaries Mainland China
Statements
(%)
0 Syncmold Enterprise Corporation Syncmold Enterprise (Samoa) Subsidiary $1,797,961 $ 57,070 $ $ - $ - 0.00 $2,996,601 Y N N
Corp. (30% of the net worth of (US$ 2,000 (50% of the net worth of
the Corporation) thousand ) the Corporation)
Fullking Development Subsidiary $1,797,961 285,350 - - 0.00 $2,996,601 Y N N
Limited (30% of the net worth of (US$ 10,000 (50% of the net worth of
the Corporation) thousand ) the Corporation)
Gatetech Technology Inc. Subsidiary $1,797,961 50,000 50,000 - - 0.83 $2,996,601 Y N N
(30% of the net worth of (50% of the net worth of
the Corporation) (Notes 1 and 6) the Corporation)
Leohab Enterprise Co., Ltd. Subsidiary $1,797,961 186,338 186,338 71,538 - 3.11 $2,996,601 Y N N
(30% of the net worth of (US$ 2,500 (US$ 2,500 (50% of the net worth of
the Corporation) thousand ) thousand ) the Corporation)
(NT$ 115,000 (NT$ 115,000
thousand ) thousand )
(Notes 1, 2 3,
5 and 6)
Syncmold Enterprise Subsidiary $1,797,961 285,350 285,350 - - 4.76 $2,996,601 Y N N
Vietnam Co., Ltd. (30% of the net worth of (US$ 10,000 (US$ 10,000 (50% of the net worth of
the Corporation) thousand ) thousand ) the Corporation)
(Notes 4 and 6)
Forever Business Subsidiary $1,797,961 627,770 342,420 - - 5.71 $2,996,601 Y N N
Development Limited (30% of the net worth of (US$ 22,000 (US$ 12,000 (50% of the net worth of
the Corporation) thousand ) thousand ) the Corporation)
(Notes 1 and 6)
1 Leohab Enterprise Co., Ltd. Commuwell Enterprise Subsidiary $128,402 89,833 89,833 3,660 - 1.52 $256,803 N N N
(Thailand) Co., Ltd (50% of the net worth of (THB 98,189 (THB 98,189 (100% of the net worth
Leohab Enterprise thousand ) thousand ) of Leohab Enterprise
Co., Ltd.) (Notes 5 and 6) Co., Ltd.)
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Note 1: The co-financing amount of endorsement and guarantees by Forever Business Development Limited, Gatetech Technology Inc and Leohab Enterprise Co., Ltd. to bank D is $442,420 thousand.

Note 2: The financing amount of endorsement and guarantees by Leohab Enterprise Co., Ltd to bank C is $30,000 thousand.

Note 3: The financing amount of endorsement and guarantees by Leohab Enterprise Co., Ltd to bank B is $35,000 thousand.

Note 4: The co-financing amount of endorsement and guarantees by Syncmold Enterprise Vietnam Co., Ltd to bank E is $285,000 thousand.

Note 5: The co-financing amount of endorsement and guarantees by Commuwell Enterprise (Thailand) Co., Ltd. and Leohab Enterprise Co., Ltd. to bank A is $161,171 thousand.

Note 6: The Corporation co-financed most of the endorsement and guarantee amounts, and the Corporation’s total balance for endorsements and guarantees is $864,108 thousand. The Corporation and its subsidiaries’ total amount for endorsements and guarantees is $953,941 thousand.

41 -

TABLE 3

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD MARCH 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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March 31, 2021
Relationship with the
Holding Company Name Type and Name of Marketable Securities Financial Statement Account Number of Carrying Percentage of Note
Holding Company Fair Value
Shares Amount Ownership (%)
Syncmold Enterprise Corporation Shares
Gigastone Corporation - Financial assets at FVTPL - non-current 847,011 $ 10,215 1.66 $ 10,215 (Notes 2 and 6)
Tiga Gaming Inc. - Financial assets at FVTPL - non-current 1,332,132 7,276 5.06 7,276 (Notes 3 and 6)
Foxfortune Technology Limited - Financial assets at FVTPL - non-current 1,000,000 37,945 5.80 37,945 (Notes 4 and 6)
Hercules BioVenture, L.P. - Financial assets at FVTPL - non-current 342,105 12,020 2.63 12,020 (Notes 4 and 6)
Winmate Inc. - Financial assets at FVTPL - current 1,038,000 81,898 1.44 81,898 (Notes 2 and 6)
Auras Technology Co., Ltd. - Financial assets at FVTPL - current 200,000 44,000 0.23 44,000 (Notes 2 and 6)
Co-Tech Development Corp. - Financial assets at FVTPL - current 1,163,000 88,156 0.46 88,156 (Notes 2 and 6)
Private funds
China Development of Healthcare Venture of Financial assets at FVTPL - non-current 5,017,715 2,493 0.96 2,493 (Notes 4 and 6)
Limited Partnership
Structured commodity
Dongguan Khuan Huang Precise Mold Peoples’ profit 171 and 172 from E.SUN Bank - Financial assets at FVTPL - current - 65,163 - 65,163 (Notes 5 and 6)
Plastic Co., Ltd.
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Note 1: The negotiable securities in the table above are the shares, bonds and mutual funds recognized under IFRS 9 - financial instruments.

Note 2: The shares are calculated at the strike price as of March 31, 2021

Note 3: The shares are measured using the market approach.

Note 4: The shares are measured using the asset approach.

Note 5: The structured commodity is calculated at its contract worth as of March 31, 2021.

Note 6: No guarantees, pledged collateral or other restricted situations.

Note 7: Refer to Table 7 for information on investments in subsidiaries and associates.

42 -

TABLE 4

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE THREE MONTHS ENDED MARCH 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Notes/Accounts
Transaction Details Abnormal Transaction
Receivable (Payable)
Buyer Related Party Relationship Note
Purchase/ % of % of
Amount Payment Terms Unit Price Payment Terms Ending Balance
Sale Total Total
Syncmold Enterprise Corporation Zhongshan Fulfil Tech. Co., Ltd. Subsidiary Purchase $ 336,561 56 Note 1 $ - - $ (486,356) 49
Fuzhou Fulfil Tech Co., Ltd. Subsidiary Purchase 103,234 17 Note 1 - - (133,047) 13
Suzhou Fulfil Electronics Co., Ltd. Kunshan Fulfil Tech Co., Ltd. Indirect subsidiary Purchase 109,346 19 Note 1 - - (81,270) 11
Zhongshan Fulfil Tech. Co., Ltd. Syncmold Enterprise Corporation Parent company Sales (336,561) 50 Note 1 - - 486,356 47
Fuzhou Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation Parent company Sales (103,234) 25 Note 1 - - 133,047 31
Kunshan Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Indirect subsidiary Sales (109,346) 100 Note 1 - - 81,270 100
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Note 1: Payment terms are the same as the payment terms of non-related parties.

Note 2: All the transactions in the table above have been eliminated during the preparation of the consolidated financial statements.

43 -

TABLE 5

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL MARCH 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Overdue Amount
Allowance for
Ending Balance Turnover Received in
Company Name Related Party Relationship Impairment
(Note 1) Rate Amount Actions Taken Subsequent
Loss
Period
Grand Advance Inc. Syncmold Enterprise Corporation Parent company $ 256,815 - $ - - $ - $ -
(Note 1)
Fuzhou Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation Parent company 133,047 - - - 29,095 -
Zhongshan Fulfil Tech. Co., Ltd. Syncmold Enterprise Corporation Parent company 486,356 - - - 178,085 -
Suzhou Fulfil Electronics Co., Ltd. Syncmold Enterprise Corporation Parent company 262,888 - - - 139,785 -
Suzhou Leoho Electronics Co., Ltd. Leohab Enterprise Co., Ltd. Indirect subsidiary 157,711 - - - 7,808 -
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Note 1: Financing.

Note 2: All the transactions in the table above have been eliminated during the preparation of the consolidated financial statements.

44 -

TABLE 6

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Original Investment Amount As of March 31, 2021 Net Income
Share of Profit
Investor Company Investee Company Location Main Businesses and Products March 31, March 31, Number of Carrying (Loss) of the Note
% (Loss)
2021 2020 Shares Amount Investee
Syncmold Enterprise Corporation Syncmold Enterprise (Samoa) Corp. Samoa Trading and related import and export businesses of metal $ 110,598 $ 110,598 3,546 100.00 $ 2,558,123 $ 32,619 $ 30,902 (Note 1)
molds and plastic molds as well as the reinvestment of
subsidiaries in mainland China
Grand Advance Inc. Samoa Trading, import and export and investment in electronic parts 506,240 506,240 - 100.00 3,082,218 72,828 73,327 (Note 1)
Syncmold Enterprise (USA) Corp. USA Trading, import and export in electronic parts 32 32 - 100.00 (2,639) (113) (113) (Note 2)
High Grade Tech Co., Ltd. Taiwan The design and sale of television hangers and related import and 36,075 36,075 2,280 38.00 132,523 6,396 2,430 (Note 2)
export businesses
Corebio Technologies Co., Ltd. Taiwan Medical technology and precision instrument wholesale and 52,000 52,000 5,200 38.29 33,876 (5,331) (2,041) (Note 2)
retail
Leohab Enterprise Co., Ltd. Taiwan Precision hardware components manufacturing 232,677 232,677 16,620 70.00 252,406 7,967 5,223 (Note 2)
Gatetech Technology Inc. Taiwan Precise molding and magnesium alloy die caster manufacturing 553,815 553,815 42,207 73.43 635,697 (9,742) (7,110) (Note 1)
and transaction business
Syncmold Enterprise Vietnam Co., Ltd. Vietnam Trading, import and export and investment in electronic parts 302,444 302,444 - 100.00 236,200 (8,350) (8,350) (Note 2)
Syncmold Enterprise (Malaysia) Sdn. Malaysia Trading, import and export in electronic parts, customer support 3,639 3,639 - 100.00 1,083 (746) (746) (Note 2)
Bhd. and service center
Syncmold Enterprise (Singapore) Pte. Singapore Trading, import and export in electronic parts, electronic 1,100 1,100 - 100.00 893 312 312 (Note 2)
Ltd. components and parts design
Syncmold Enterprise (Thailand) Co., Ltd. Thailand Trading, import and export and investment in electronic parts 19,920 19,920 - 100.00 11,917 (2,759) (2,759) (Note 2)
-
Grand Advance Inc. Canford International Limited Samoa Import and export trade and investment business 119,342 119,342 - 100.00 1,397,740 (10,623) (10,623) (Note 2)
Fullking Development Limited Hong Kong Import and export trade and investment business 160,175 160,175 - 100.00 1,077,017 101,188 101,168 (Note 2)
Full Glary Holding Limited Hong Kong Import and export trade and investment business 259,720 259,720 - 100.00 308,413 (1,643) (457) (Note 2)
-
Syncmold Enterprise (Samoa) Corp. Full Big Limited Samoa Reinvestment in subsidiaries in mainland China and 16,643 16,643 - 100.00 236,185 151 151 (Note 2)
international trade
Forever Business Development Limited Samoa Reinvestment in subsidiaries in mainland China and 125,957 125,957 - 100.00 338,949 4,265 4,250 (Note 2)
international trade
Full Celebration Limited Samoa Reinvestment in subsidiaries in mainland China and 147,710 147,710 - 100.00 232,160 (14,746) (14,746) (Note 2)
international trade
Gatetech Technology Inc. Gatech Holdings Ltd. Samoa General investment business 647,041 647,041 20,130 100.00 621,995 (245) (245) (Note 2)
Gatech Holdings Ltd. Gatech International Ltd. Samoa General investment business 657,284 657,284 20,268 100.00 627,334 (245) (245) (Note 2)
Leohab Enterprise Co., Ltd. Sweet International Group Ltd. British Virgin General investment business 280,368 280,368 - 100.00 515,537 15,104 17,587 (Note 2)
Islands
Sweet International Group Ltd. Lucky King Holdings Ltd. Mauritius General investment business 280,368 280,368 - 100.00 510,585 15,104 15,104 (Note 2)
Lucky King Holdings Ltd. Commuwell Enterprise (Thailand) Co., Thailand Plastic shot and hardware components manufacturing 113,236 113,236 - 100.00 181,318 11,730 11,730 (Note 2)
Ltd.
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Note 1: Calculated based on the audited financial statements of the investee company and the Corporation’s shareholding ratio.

Note 2: Calculated based on the non-reviewed financial statements of the investee company and the Group’s shareholding ratio.

Note 3: Refer to Table 7 for related information on investees from mainland China.

Note 4: The profit and loss of investments between reinvested companies, investments accounted for using the equity method, and the equity of investee companies were all eliminated during the preparation of the consolidated financial statements, except for High Grade Tech Co., Ltd. and Corebio Technology Co., Ltd.

45 -

TABLE 7

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Accumulated Remittance of Funds
Accumulated
Outward Accumulated
Outward % Ownership of
Remittance for Carrying Amount Repatriation of
Remittance for Net Income (Loss) Direct or Investment
Investee Company Main Businesses and Products Paid-in Capital Method of Investment Investment from as of Investment
Outward Inward Investment from of the Investee Indirect Gain (Loss)
Taiwan as of March 31, 2021 Income as of
Taiwan as of Investment
December 31, March 31, 2021
March 31, 2021
2020
Fuzhou Fulfil Tech Co., Ltd. Electronic parts processing and $ 42,083 Invested through $ 59,438 $ - $ - $ 59,438 $ 34,170 100.00 $ 34,170 $ 1,106,861 $ 1,933,646
manufacturing. Trading and Syncmold Enterprise (US$ 2,083 (US$ 2,083 (Note 1) (US$ 67,764
related import and export (Samoa) Corp. thousand) thousand) thousand)
business
Fujian Khuan Hua Precise Mold Processing, manufacturing, trading 107,754 Invested through 38,693 - - 38,693 (632) 100.00 (632) 310,238 -
Co., Ltd. and related import and export Syncmold Enterprise (US$ 1,356 (US$ 1,356 (Note 2)
business of various metal molds, (Samoa) Corp. thousand) thousand)
plastic molds and plastic
injection molds
Fuqing Fuqun Electronic Hardware Electronic parts processing and 57,426 Invested through - - - - 7,523 100.00 7,523 250,603 22,885
Tech Co., Ltd. manufacturing. Trading and Syncmold Enterprise (Note 2) (US$ 802
related import and export (Samoa) Corp. thousand)
business
Dongguan Khuan Huang Precise Processing, manufacturing, trading 121,762 Invested through Forever - - - - 3,932 100.00 3,932 254,894 -
Mold Plastic Co., Ltd. and related import and export Business Development (Note 2)
business of various metal molds, Limited
plastic molds and plastic
injection molds
Suzhou Fulfil Electronics Co., Ltd. Electronic parts processing and 17,971 Invested through Canford - - - - (10,623) 100.00 (10,623) 1,397,722 1,216,447
manufacturing. Trading and International Limited (Note 1) (US$ 42,630
related import and export thousand)
business
Zhongshan Fulfil Tech. Co., Ltd. Electronic parts processing and 148,193 Invested through Fullking - - - - 101,188 100.00 101,188 1,141,669 1,194,361
manufacturing. Trading and Development Limited (Note 1) (US$ 41,856
related import and export thousand)
business
Kunshan Fulfil Tech Co., Ltd. Manufacturing and assembling of 227,563 Invested through Full 171,210 - - 171,210 (1,643) 100.00 (1,643) 308,784 -
laptops uses precise bearing, Glary Holding Limited (US$ 6,000 (US$ 6,000 (Note 2)
hardware and related accessories thousand) thousand)
Chongqing Fulfil Tech Co., Ltd. The processing, manufacturing, 135,284 Invested through Full - - - - (14,746) 100.00 (14,746) 232,148 517,168
related imports and exports of all Celebration Limited (Note 2) (US$ 18,124
electronic, plastic and hardware thousand)
parts
Gatetech (Suzhou) Technology Co., Aluminum and magnesium alloy 693,401 Invested through Gatech 693,401 - - 693,401 (2,339) 73.43 (1,717) 626,040 -
Ltd. die caster International (US$ 24,300 (US$ 24,300 (Note 2)
thousand) thousand)
Suzhou Leoho Electronics Co., Ltd. Precision hardware components 201,717 Invested through Lucky 127,780 - - 127,780 3,373 70.00 2,361 329,267 -
manufacturing King Holdings Ltd. (US$ 4,478 (US$ 4,478 (Note 2)
thousand) thousand)
(Continued)
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46 -

(Concluded)

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Accumulated Outward Remittance for Upper Limit on the Amount of
Investment Amount Authorized by the
Investment in Mainland China as of Investment Stipulated by the
Investment Commission, MOEA
March 31, 2021 Investment Commission, MOEA
$1,303,336 $2,209,836 $3,799,399
(US$45,675 thousand) (US$77,443 thousand)
----- End of picture text -----

Note 1: Calculated based on the audited financial statements of the investee company and the Corporation’s shareholding ratio.

Note 2: Calculated based on the non-reviewed financial statements of the investee company and the Group’s shareholding ratio.

Note 3: The profit and loss of investments between reinvested companies, investments accounted for using the equity method, and the equity of investee companies were all eliminated during the preparation of the consolidated financial statements.

47 -

TABLE 8

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Transaction Details % of Total
No. Relationship
Investee Company Counterparty Payment Terms Sales or Asset
(Note 1) (Note 2) Financial Statement Account Price
(Note 3)
1 Zhongshan Fulfil Tech. Co., Ltd. Syncmold Enterprise Corporation 2 Sale $ 336,561 No significant difference with non-related parties 15
Syncmold Enterprise Corporation 2 Trade receivables from related parties 486,356 No significant difference with non-related parties 4
2 Dongguan Khuan Huang Precise Mold Syncmold Enterprise Corporation 2 Trade receivables from related parties 11,336 No significant difference with non-related parties -
Plastic Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. 3 Sale 62,231 No significant difference with non-related parties 3
Zhongshan Fulfil Tech. Co., Ltd. 3 Trade receivables from related parties 40,186 No significant difference with non-related parties -
Fuzhou Fulfil Tech Co., Ltd. 3 Sale 19,275 No significant difference with non-related parties 1
Suzhou Fulfil Electronics Co., Ltd. 3 Sale 53,373 No significant difference with non-related parties 2
Suzhou Fulfil Electronics Co., Ltd. 3 Trade receivables from related parties 47,143 No significant difference with non-related parties -
3 Fuzhou Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation 2 Sale 103,234 No significant difference with non-related parties 5
Syncmold Enterprise Corporation 2 Trade receivables from related parties 133,047 No significant difference with non-related parties 1
4 Fuqing Fuqun Electronic Hardware Tech Fuzhou Fulfil Tech Co., Ltd. 3 Sale 93,864 No significant difference with non-related parties 4
Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. 3 Trade receivables from related parties 29,777 No significant difference with non-related parties -
Suzhou Fulfil Electronics Co., Ltd. 3 Sale 42,373 No significant difference with non-related parties 2
Suzhou Fulfil Electronics Co., Ltd. 3 Trade receivables from related parties 28,824 No significant difference with non-related parties -
Zhongshan Fulfil Tech. Co., Ltd. 3 Sale 41,289 No significant difference with non-related parties 2
Zhongshan Fulfil Tech. Co., Ltd. 3 Trade receivables from related parties 26,827 No significant difference with non-related parties -
5 Grand Advance Inc. Syncmold Enterprise Corporation 2 Other receivables from related parties - 256,815 Based on the contract between both parties 2
financing
Fullking Development Limited 3 Other receivables from related parties - 42,803 Based on the contract between both parties -
financing
6 Suzhou Fulfil Electronics Co., Ltd. Syncmold Enterprise Corporation 2 Sale 92,818 No significant difference with non-related parties 4
Syncmold Enterprise Corporation 2 Trade receivables from related parties 262,888 No significant difference with non-related parties 2
7 Full Big Limited Fullking Development Limited 3 Other receivables from related parties - 22,828 Based on the contract between both parties -
financing
8 Forever Business Development Limited Dongguan Khuan Huang Precise Mold Plastic 3 Trade receivables from related parties 15,595 No significant difference with non-related parties -
Co., Ltd.
9 Kunshan Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. 3 Sale 109,346 No significant difference with non-related parties 5
Suzhou Fulfil Electronics Co., Ltd. 3 Trade receivables from related parties 81,270 No significant difference with non-related parties 1
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(Continued)

48 -

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Transaction Details % of Total
No. Relationship
Investee Company Counterparty Payment Terms Sales or Asset
(Note 1) (Note 2) Financial Statement Account Price
(Note 3)
10 Suzhou Leoho Electronics Co., Ltd. Leoho Enterprise Co., Ltd. 3 Trade receivables from related parties $ 157,711 No significant difference with non-related parties 1
11 Chongqing Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation 2 Sale 48,026 No significant difference with non-related parties 2
Syncmold Enterprise Corporation 2 Trade receivables from related parties 71,405 No significant difference with non-related parties 1
Suzhou Fulfil Electronics Co., Ltd. 3 Sale 32,485 No significant difference with non-related parties 1
Suzhou Fulfil Electronics Co., Ltd. 3 Trade receivables from related parties 32,388 No significant difference with non-related parties -
12 Syncmold Enterprise (Samoa) Corp. Syncmold Enterprise Corporation 2 Other receivables from related parties - 42,803 Based on the contract between both parties -
financing
Fujian Khuan Hua Precise Mold Co., Ltd. 3 Other receivables from related parties - 43,626 Based on the contract between both parties -
dividends
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Note 1: 0 represents the parent company and the subsidiaries are numbered from 1.
Note 2: 1 represents transactions from the parent company to the subsidiaries, 2 represents transactions from the subsidiaries to the parent company, and 3 represents transactions between the subsidiaries.
Note 3: The monetary amount of the transaction is calculated based on percentage of total sales or assets. If the account is an asset or a liability, the ratio is calculated using the ending balance. If the account is in the income statement, the ratio is calculated using cumulative amount during that period.

Note 4: The disclosure standard of the table above was 10% of the specified account and reached to $10,000 thousand.

Note 5: All the transactions in the table above have been eliminated during the preparation of the consolidated financial statements.

(Concluded)

49 -

AI assistant

SYNCMOLD — Interim / Quarterly Report 2021

51868_rns_2021-11-09_b99a3691-a800-4844-b386-da1a3fe66d10.pdf

Syncmold Enterprise Corporation and Subsidiaries

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

b. Basis of preparation

2) Taxation

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT AMORTIZED COST

9. TRADE RECEIVABLES, NET

March 31, 2021

10. INVENTORIES

11. SUBSIDIARIES

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

c. Subleases

15. GOODWILL

16. INTANGIBLE ASSETS

17. BORROWINGS

a. Short-term borrowings

c. Long-term borrowings

18. OTHER PAYABLES

19. RETIREMENT BENEFIT PLANS

20. EQUITY

Ordinary shares

b. Capital surplus

d. Special reserve

e. Non-controlling interests

21. NET PROFIT

Accrual rate

Amount

22. INCOME TAXES

b. Income tax assessments

23. EARNINGS PER SHARE

Net Profit for the Period

Shares

24. FINANCIAL INSTRUMENTS

December 31, 2020

1) Market risk

a) Foreign currency risk

Sensitivity analysis

b) Interest rate risk

Sensitivity analysis

Sensitivity analysis

2) Credit risk

3) Liquidity risk

Financing facilities

25. TRANSACTIONS WITH RELATED PARTIES

d. Prepayments

26. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

27. SIGNIFICANT LOSSES ON DISASTER

28. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

March 31, 2020

29. SEPARATELY DISCLOSED ITEMS

SYNCMOLD Interim / Quarterly Report 2021